Alberto v. Cambrian Homecare ( 2023 )


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  • Filed 4/19/23; Certified for Publication 5/10/23 (order attached)
    IN THE COURT OF APPEAL OF THE STATE OF
    CALIFORNIA
    SECOND APPELLATE DISTRICT
    DIVISION FOUR
    JENNIFER PLAYU ALBERTO,                                       B314192
    Plaintiff and Respondent,                            (Los Angeles County
    Super. Ct. No. 20STCV41466)
    v.
    CAMBRIAN HOMECARE,
    Defendant and Appellant.
    APPEAL from an order of the Superior Court of Los
    Angeles County, Elihu M. Berle, Judge. Affirmed.
    Atkinson, Andelson, Loya, Ruud & Romo, Amber S.
    Healy, Neil M. Katsuyama, and Lauren D. Fierro, for
    Defendant and Appellant.
    Bibiyan Law Group, David D. Bibiyan, and Diego
    Aviles, for Plaintiff and Respondent.
    INTRODUCTION
    Jennifer Playu Alberto, the respondent, is a former
    employee of appellant Cambrian Homecare. When she was
    hired, Alberto signed a written arbitration agreement.
    Alberto brought wage-and-hour claims against
    Cambrian. Cambrian petitioned for arbitration. The trial
    court denied the petition. The trial court found that even if
    the parties had formed an arbitration agreement, the
    agreement had unconscionable terms, terms that so
    permeated the agreement they could not be severed.
    We affirm. The agreement, read together—as it must
    be—with other contracts signed as part of Alberto’s hiring,
    contained unconscionable terms. The trial court had
    discretion to not sever the unconscionable terms, and to
    refuse to enforce the agreement.
    FACTUAL AND PROCEDURAL BACKGROUND1
    A.Cambrian Hires Alberto; Alberto Signs
    Agreements
    Cambrian hired Alberto on or about September 17,
    2019. That same day, as part of her orientation, a Cambrian
    representative gave her agreements to sign. Three of those
    agreements relate to resolution of potential disputes: a
    “Dispute Resolution Process—Arbitration Agreement,” a
    1       The parties do not materially dispute the facts we describe
    here.
    2
    “Confidentiality Agreement,” and a “Confidentiality
    Agreement Addendum.”
    1.    Arbitration Agreement
    The Arbitration Agreement states that “[a]ny and all
    claims or controversies arising out of Employee’s . . .
    employment . . . or cessation of employment with Cambrian
    shall be resolved through final and binding arbitration.” The
    parties agreed not to “join or consolidate claims submitted
    for arbitration under this Agreement with those of any other
    persons, and that no form of class, collective, or
    representative action” would be maintained without the
    parties’ mutual consent. They “agree[d] that by signing this
    Agreement[,] they have entered into a binding legal
    agreement.” The agreement states that “[t]his Agreement is
    entered into under the Federal Arbitration Act, and shall be
    interpreted and construed in accordance with the law and
    procedures developed under that statute.”
    The Arbitration Agreement contains two signature
    blocks, one for “Employee Name Printed” and one for “Paul
    J. Quiroz” as “Managing Director.” Alberto signed the
    Arbitration Agreement in the signature block allotted for
    her. But the signature block for Mr. Quiroz, as “Managing
    Director,” was left blank.
    2.  Confidentiality Agreement and
    Addendum
    Alberto signed the Confidentiality Agreement and
    Addendum on the same day and as part of the same process
    3
    in which she signed the Arbitration Agreement. The
    Confidentiality Agreement states that Alberto may not
    disclose what that agreement calls “trade secrets.” It defines
    such “trade secrets” broadly to include “information of a
    confidential, proprietary or secret nature.” Notably, “[s]uch
    trade secret information includes, but is not limited to,
    compensation and salary data and other employee
    information.” The Confidentiality Agreement required
    Alberto to “acknowledge” that unauthorized use or disclosure
    of Cambrian’s proprietary information “would cause
    irreparable injury to the Company,” and to “consent to the
    order of an immediate injunction, without bond, from any
    court of competent jurisdiction, enjoining and restraining”
    Alberto from “violating or threatening to violate” the
    agreement. The agreement also states that if a dispute
    arises “and a lawsuit is filed, the prevailing party shall be
    entitled to reasonable attorney’s fees and costs.”
    The Confidentiality Agreement Addendum requires
    Alberto to keep confidential “[a]ll . . . employee information,”
    including, without limitation, their “names . . . , addresses
    and phone numbers.” The Addendum reiterates that
    disclosure of such information would cause “irreparable
    injury” to Cambrian, and that the failure to comply with the
    agreement would entitle Cambrian “to seek injunctive or
    equitable relief as well as monetary damages.”
    4
    B.     Alberto Files a Complaint; Cambrian
    Demands Arbitration
    On October 27, 2020, Alberto filed a complaint, alleging
    multiple wage-and-hour causes of action. On January 4,
    2021, Cambrian asked Alberto to arbitrate her dispute. She
    refused and, on January 25, 2021, filed a “First Amended
    Class Action Complaint,” again alleging wage-and-hour
    causes of action, and also alleging she was an “‘aggrieved
    employee’” under the Private Attorneys General Act (PAGA).
    On March 17, 2021, Cambrian petitioned to compel
    arbitration. Cambrian also contended that Alberto had
    waived any class or representative claims.
    On April 7, 2021, Alberto opposed the petition. She
    argued that no arbitration agreement had been formed
    because Cambrian had not signed the agreement. She also
    argued that the Arbitration Agreement was “infected with
    both procedural and substantive unconscionability, the taint
    of which cannot be severed or cured.” On April 19, 2021,
    Cambrian replied.
    On April 29, 2021, the trial court considered
    Cambrian’s petition, and asked for additional briefing on the
    issue of whether the Arbitration Agreement delegated the
    determination of the Arbitration Agreement’s validity to an
    arbitrator, not the court. The parties filed supplemental
    briefing. Cambrian initially asked the trial court to decide
    the validity of the waiver of representative action but leave
    for the arbitrator remaining issues concerning the
    Arbitration Agreement’s validity. Ultimately, both
    5
    Cambrian and Alberto agreed that the trial court, not the
    arbitrator, should decide all issues concerning the validity of
    the agreement to arbitrate, a stipulation the trial court
    accepted.
    C.     The Trial Court Denies Cambrian’s Petition
    On June 11, 2021, the trial court denied Cambrian’s
    petition to compel arbitration. The trial court found that
    Cambrian’s failure to sign the Arbitration Agreement meant
    that the parties had not formed an agreement to arbitrate.
    It reasoned that the Arbitration Agreement contained an
    “express[] provision that the parties need[ed] to sign it in
    order [for it] to be binding.”
    The trial court also found the Arbitration Agreement
    unconscionable and unenforceable, even assuming it had
    been formed. It found the agreement procedurally
    unconscionable as a contract of adhesion. Recognizing that
    both procedural and substantive unconscionability were
    necessary to avoid enforcing the agreement, the trial court
    found the agreement substantively unconscionable for three
    reasons. First, it noted that the Confidentiality Agreement
    and Addendum, which it found to be part of the “same
    transaction” as the Arbitration Agreement, allowed
    Cambrian to obtain injunctive relief in a court to remedy a
    violation of Cambrian’s confidentiality interests, without the
    need to post a bond or demonstrate irreparable injury, even
    as Alberto’s claims against Cambrian were relegated to
    arbitration. Second, the trial court found unconscionable the
    6
    Confidentiality Agreement’s prohibition on discussing salary
    information. The trial court reasoned that if Alberto “sought
    to avail herself of her rights under the Labor Code, she
    would be faced with either the inability to discuss or disclose
    salary information with other employees [under] the threat
    of litigation, including potential liability for attorneys’ fees
    and cost[s],” which would “dissuade employees from bringing
    claims individually,” and impede “the ability for employees
    to investigate facts for collective action.” Third, the trial
    court found the agreement’s wholesale waiver of PAGA
    claims unconscionable and against public policy. Based on
    the combination of these three factors, the court found a
    “high degree of substantive unconscionability.”
    The trial court found the entire agreement to arbitrate
    “permeat[ed]” by unconscionability, meaning that the
    unconscionable provisions could not be severed and the
    remainder of the Arbitration Agreement enforced. It noted
    that “standing alone, none of these clauses would necessitate
    a conclusion that the agreement is permeat[ed by]
    unconscionability. However, taken together, such a
    conclusion is required.” Cambrian timely appealed.
    DISCUSSION
    A.    The Trial Court Did Not Abuse Its Discretion
    in Refusing to Enforce the Agreement
    Cambrian, on appeal, contests the trial court’s rulings
    on contract formation and unconscionability. We need not
    7
    reach the contract formation issue. Assuming (without
    deciding) that Cambrian and Alberto formed an arbitration
    agreement despite Cambrian’s missing signature, the
    agreement had unconscionable terms. The trial court was
    not required to sever those terms, and therefore was not
    required to enforce the Arbitration Agreement.
    1.   Unconscionable Terms
    (a)    Basic principles and standard of
    review
    Unconscionable terms in an arbitration agreement
    cannot be enforced. (OTO, L.L.C. v. Kho (2019) 
    8 Cal.5th 111
    , 118.) “[T]he party opposing arbitration bears the
    burden of proving by a preponderance of the evidence any
    defense, such as unconscionability. [Citations.]” (Peng v.
    First Republic Bank (2013) 
    219 Cal.App.4th 1462
    , 1468.)
    When the facts are not in dispute, this court reviews
    unconscionability de novo. (Pinela v. Neiman Marcus Grp.,
    Inc. (2015) 
    238 Cal.App.4th 227
    , 241 [reviewing de novo “the
    legal question of unconscionability here, in the first
    instance” when there were “no facts in dispute”].) Here, no
    disputed factual issue bears upon our unconscionability
    analysis. The parties do not dispute the language of the
    relevant agreements. They do not dispute that Alberto was
    required to sign the agreements as a condition of
    employment. Accordingly, our review of Alberto’s
    unconscionability defense is de novo.
    8
    “‘[U]nconscionability has both a “procedural” and a
    “substantive” element,’ the former focusing on ‘“oppression”’
    or ‘“surprise”’ due to unequal bargaining power, the latter on
    ‘“overly harsh”’ or ‘“one-sided”’ results. [Citation.] ‘The
    prevailing view is that [procedural and substantive
    unconscionability] must both be present in order for a court
    to exercise its discretion to refuse to enforce a contract or
    clause under the doctrine of unconscionability.’ [Citation.]
    But they need not be present in the same degree.
    ‘Essentially a sliding scale is invoked which disregards the
    regularity of the procedural process of the contract
    formation, that creates the terms, in proportion to the
    greater harshness or unreasonableness of the substantive
    terms themselves.’ [Citations.] In other words, the more
    substantively oppressive the contract term, the less evidence
    of procedural unconscionability is required to come to the
    conclusion that the term is unenforceable, and vice versa.’”
    (Armendariz v. Foundation Health Psychcare Services, Inc.
    (2000) 
    24 Cal.4th 83
    , 114 (Armendariz).)
    The trial court found a low degree of procedural
    unconscionability due to the adhesive nature of the
    agreement. Neither party contests this finding on appeal.
    Therefore, only a high degree of substantive
    unconscionability would render the agreement
    unconscionable. (See, e.g., Ramirez v. Charter
    Communications, Inc. (2022) 
    75 Cal.App.5th 365
    , 373,
    review granted June 1, 2022, S273802 [“When, as here, the
    degree of procedural unconscionability is low, the agreement
    9
    must be enforced unless the degree of substantive
    unconscionability is high”].) We find that the trial court did
    not err in finding a high degree of substantive
    unconscionability.
    (b)   Relation of Confidentiality
    Agreement to Arbitration
    Agreement
    Cambrian largely concedes that parts of the
    Confidentiality Agreement are substantively unconscionable.
    It argues, however, that unconscionability in the
    Confidentiality Agreement does not matter. According to
    Cambrian, because “the Confidentiality Agreement is not
    part of the Arbitration Agreement . . . any purportedly
    unconscionable provisions in the Confidentiality Agreement
    have no bearing on the enforceability of the Arbitration
    Agreement.” Not so.
    “‘Under Civil Code section 1642, it is the general rule
    that several papers relating to the same subject matter and
    executed as parts of substantially one transaction, are to be
    construed together as one contract [citation].’” (IMO
    Development Corp. v. Dow Corning Corp. (1982) 
    135 Cal.App.3d 451
    , 463.) According to that rule, documents
    executed as part of a single transaction are construed
    together, even if they do not expressly refer to one another.
    (Boyd v. Oscar Fisher Co. (1989) 
    210 Cal.App.3d 368
    , 378;
    Cadigan v. American Trust Co. (1955) 
    131 Cal.App.2d 780
    ,
    10
    786–787 [“it [is] unnecessary for either instrument to refer to
    the other”].)
    Here, we have no difficulty concluding that the
    Arbitration Agreement and the Confidentiality Agreement
    should be read together. They were executed on the same
    day. They were both separate aspects of a single primary
    transaction—Alberto’s hiring. They both governed,
    ultimately, the same issue—how to resolve disputes arising
    between Alberto and Cambrian arising from Alberto’s
    employment. Failing to read them together artificially
    segments the parties’ contractual relationship. Treating
    them separately fails to account for the overall dispute
    resolution process the parties agreed upon.
    So, unconscionability in the Confidentiality Agreement
    can, and does, affect whether the Arbitration Agreement is
    also unconscionable. To hold otherwise would let Cambrian
    impose unconscionable arbitration terms, and then avoid a
    finding of unconscionability because it put the objectionable
    terms in a (formally) separate document. That is contrary to
    Civil Code section 1642. (See Brookwood v. Bank of America
    (1996) 
    45 Cal.App.4th 1667
    , 1675–1676 [trial court properly
    considered under Civil Code section 1642 separate
    documents containing arbitration clauses and employment
    contract with no such clause when all documents were part
    of same transaction], abrogated on other grounds by
    Donovan v. Rrl Corp. (2001) 
    26 Cal.4th 261
    , 279, as
    recognized in Greif v. Sanin (2022) 
    74 Cal.App.5th 412
    , 439.)
    11
    Cambrian argues the trial court erred by
    “incorporat[ing]” the terms of the Confidentiality Agreement
    into the Arbitration Agreement, citing Troyk v. Farmers
    Group, Inc. (2009) 
    171 Cal.App.4th 1305
    , 1331. This
    argument confuses two principles of law. Construing
    different instruments together pursuant to Civil Code
    section 1642 is not the same thing as incorporating them
    into one instrument. (Mountain Air Enterprises, LLC v.
    Sundowner Towers, LLC (2017) 
    3 Cal.5th 744
    , 759 [“‘“[J]oint
    execution would require the court to construe the two
    agreements in light of one another; it would not merge them
    into a single written contract”’”].) Cambrian is correct—the
    Arbitration Agreement and the Confidentiality Agreement
    do not incorporate one another. But, since the two
    agreements were part of a single transaction (Alberto’s
    hiring and the dispute resolution procedure applicable to
    Alberto) unconscionability in the Confidentiality Agreement
    is relevant in determining whether the parties’ agreement to
    arbitrate was unconscionable.2 We turn now to that
    question.
    2     At oral argument, Cambrian contended that Ahern v. Asset
    Management Consultants, Inc. (2022) 
    74 Cal.App.5th 675
    supports its position. We disagree. In Ahern, one agreement
    lacked an arbitration clause while another agreement contained a
    “narrow” one. (Id. at 689.) Our colleagues in Division Seven
    rejected an argument that Civil Code section 1642 compelled the
    importation of the arbitration clause from one agreement into the
    other, finding that the two separate agreements covered “distinct
    and successive phases” of a real estate transaction, with nothing
    (Fn. is continued on the next page.)
    12
    (c) Non-mutuality
    “‘[T]he paramount consideration in assessing
    conscionability is mutuality.’ [Citation.]” (Davis v. Kozak
    (2020) 
    53 Cal.App.5th 897
    , 910.) Here, the trial court found
    the Confidentiality Agreement’s injunction provisions made
    the parties’ agreement to arbitrate insufficiently mutual.
    The Arbitration Agreement required Alberto to arbitrate all
    of her claims against Cambrian. But the Confidentiality
    Agreement allowed Cambrian to obtain—outside of
    arbitration—an “immediate” injunction for Alberto’s breach
    of Cambrian’s confidentiality requirements. Specifically, the
    Confidentiality Agreement required Alberto to consent to an
    “order of an immediate injunction, without bond, from any
    court of competent jurisdiction, enjoining and restraining”
    Alberto from disclosing confidential or proprietary
    information. It allowed Cambrian to obtain attorney fees if
    it prevailed on such an injunction. An injunction enforcing
    “suggesting arbitration was mandatory” for disputes relating to
    the agreement without an arbitration clause. (Id. at 696.) Here,
    the Confidentiality Agreement and Arbitration Agreements do
    not cover distinct phases of a transaction. Instead, they
    represent the parties’ overall agreement as to how to handle
    dispute resolution in connection with Alberto’s employment.
    Ahern says nothing about the issue before us—whether, when
    there are two separate agreements, both executed on a single day
    as part of an employee’s hiring, and both of which govern dispute
    resolution as part of the overall employment relationship, we
    may conclude the unconscionability in both agreements renders
    the agreement to arbitrate unconscionable.
    13
    Cambrian’s confidentiality terms would, of course,
    exclusively benefit Cambrian.
    The trial court’s finding was well supported by
    California law. To be sure, provisions that allow employers
    to seek a preliminary injunction outside of arbitration for
    breach of a confidentiality agreement are not, by themselves,
    unconscionable, simply because they primarily benefit
    employers. (Lange v. Monster Energy Co. (2020) 
    46 Cal.App.5th 436
    , 450 [provision allowing employer to seek
    preliminary injunctive relief for breach of confidentiality
    agreement was within legitimate “margin of safety” for
    employer and not unconscionable]; Carbajal v. CWPSC, Inc.
    (2016) 
    245 Cal.App.4th 227
    , 250 (Carbajal) [right to
    preliminary injunctive relief protected by California
    Arbitration Act].) But additional provisions that waive the
    employer’s need to obtain a bond before seeking an
    injunction, waive the employer’s need to show irreparable
    harm, and require an employee to consent to an immediate
    injunction are unconscionable. They exceed the legitimate
    “margin of safety” for the employer and are not mutual.
    (Lange, supra, 46 Cal.App.5th at 451 [“injunctive relief
    provisions that waive a bond and waive the requirement that
    a party show irreparable harm are substantively
    unconscionable”]; Carbajal, supra, 245 Cal.App.4th at 250
    [“injunctive relief carve-out provision creates further
    substantive unconscionability because it waives the
    requirement that [employer] post a bond to obtain an
    injunction or other equitable relief”]; ibid. [“arbitration
    14
    provision lacks mutuality and is substantively
    unconscionable when it authorizes the stronger party to
    obtain injunctive relief without establishing all of the
    essential elements for the issuance of an injunction”].)3 Each
    of those provisions was present here—the Confidentiality
    Agreement and Addendum waived Cambrian’s need to
    obtain a bond before seeking an injunction, required Alberto
    to agree in advance to the existence of irreparable injury,
    and required Alberto to consent to the issuance of an
    injunction. Those terms made the injunction provision
    unconscionable.
    (d) Discussion of wages
    The trial court found the Confidentiality Agreement’s
    prohibition on discussing wages unconscionable. As we
    describe above, the Confidentiality Agreement treated
    “compensation and salary data and other employee
    information” as a supposed “trade secret” that Alberto could
    be enjoined from discussing. Cambrian does not
    meaningfully contest the trial court’s conclusion that this
    provision was unconscionable, arguing only that a case relied
    upon by Alberto (Ting v. AT&T (9th Cir. 2003) 
    319 F.3d 1126
    ) is inapposite.
    3     Cambrian attempts to distinguish Lange and Carbajal by
    noting that the carveouts in those cases were set forth in the
    arbitration agreements themselves, not separate documents.
    Because the trial court properly construed the agreements in this
    case in light of each other, this distinction is immaterial.
    15
    The trial court was correct on this point. The Labor
    Code provides that “No employer may do any of the
    following: [¶] (a) Require, as a condition of employment, that
    an employee refrain from disclosing the amount of his or her
    wages. [¶] (b) Require an employee to sign a waiver or other
    document that purports to deny the employee the right to
    disclose the amount of his or her wages. [¶] (c) Discharge,
    formally discipline, or otherwise discriminate against an
    employee who discloses the amount of his or her wages.”
    (Lab. Code, § 232.) The Confidentiality Agreement on its
    face violated the Labor Code.
    A facially illegal provision, in direct contravention of
    the Labor Code, is unconscionable. And the provision was
    not merely illegal or unconscionable in a general sense. It
    was a kind of illegality that directly affected Alberto’s status
    in the arbitration process. As the trial court explained, if
    Alberto “sought to avail herself of her rights under the Labor
    Code, she would be faced with either the inability to discuss
    or disclose salary information with other employees [under]
    the threat of litigation, including potential liability for
    attorneys’ fees and cost[s].” The trial court rightly noted
    that this provision “dissuade[d] employees from bringing
    claims individually,” and impeded “the ability for employees
    to investigate facts” that might be used in a representative
    action, including a PAGA action. The trial court was thus
    16
    correct to find the restriction on discussing wages rendered
    the Arbitration Agreement substantively unconscionable.4
    (e) PAGA claims
    “A PAGA representative action is . . . a type of qui tam
    action,” in which “‘an “aggrieved employee” may bring a civil
    action personally and on behalf of other current or former
    employees to recover civil penalties for Labor Code
    violations.” (Iskanian v. CLS Transportation Los Angeles,
    LLC (2014) 
    59 Cal.4th 348
    , 380, 381 (Iskanian).) “‘An
    employee plaintiff suing . . . under the [PAGA] does so as the
    proxy or agent of the state’s labor law enforcement
    agencies.’” (Id. at 380.)
    The Arbitration Agreement provided that “no form of
    class, collective, or representative action” would be
    4      Under the Federal Arbitration Act (“FAA”), issues that go
    to the validity of an underlying contract, as opposed to the
    validity of an arbitration agreement itself, are normally decided
    by an arbitrator, not the court. (See Buckeye Check Cashing, Inc.
    v. Cardegna (2006) 
    546 U.S. 440
    , 445–446 [“unless the challenge
    is to the arbitration clause itself, the issue of the contract’s
    validity is considered by the arbitrator in the first instance”].)
    The parties’ briefing does not address the applicability of this
    aspect of the FAA to this case, perhaps because the parties
    stipulated to the court deciding all issues around the validity of
    the agreement to arbitrate. Accordingly, we do not consider how
    this aspect of the FAA might matter to this case, except to note
    that, as we discuss above, the restriction on discussing wages
    here is not merely a generally illegal provision, but an illegal
    provision that directly affects the one-sidedness of the arbitration
    process.
    17
    maintained without the parties’ mutual consent. Citing
    Iskanian, the trial court found this provision unconscionable
    because it required Alberto to waive her PAGA claims.
    In Iskanian, our Supreme Court held that “an
    employee’s right to bring a PAGA action is unwaivable,” and
    that “a prohibition of representative claims frustrates the
    PAGA’s objectives.” (Iskanian, supra, 
    59 Cal.4th at 383, 384
    .) Our Supreme Court therefore concluded that
    “where . . . an employment agreement compels the waiver of
    representative claims under the PAGA, it is contrary to
    public policy and unenforceable as a matter of state law.”
    (Id. at 384.) In Viking River Cruises, Inc. v. Moriana (2022)
    
    142 S.Ct. 1906
    , 1914, decided after the trial court’s ruling,
    the United States Supreme Court found a different part of
    Iskanian’s interpretation of PAGA preempted by the FAA.
    But the United States Supreme Court did not disturb
    Iskanian’s holding that a blanket PAGA waiver is
    unconscionable under California law. Rather, the United
    States Supreme Court found that, insofar as Iskanian
    invalidated a provision for being “a wholesale waiver of
    PAGA claims, . . . that aspect of Iskanian is not preempted
    by the FAA.” (Viking River Cruises, supra, 142 S.Ct. at
    1924–1925.) Although the trial court did not have the
    benefit of Viking River Cruises when it ruled, that opinion
    would not have changed the outcome. Both before and after
    Viking River Cruises, blanket waivers of PAGA claims are
    unconscionable. Therefore, the trial court’s ruling on this
    issue was correct.
    18
    2.    Severance
    Thus, we affirm the trial court’s finding that the three
    provisions it identified—the non-mutual confidentiality
    injunction provisions, the prohibition on discussion of wages,
    and the prohibition on representative and PAGA claims—
    contained a high degree of substantive unconscionability.
    We next determine whether the trial court acted properly
    when it refused to sever these provisions from the rest of the
    parties’ agreement to arbitrate.
    Unlike our de novo review of Alberto’s
    unconscionability defense, the decision on whether to sever
    unconscionable terms from an agreement is “reviewed for
    abuse of discretion” under Civil Code section 1670.5.
    (Lhotka v. Geographic Expeditions, Inc. (2010) 
    181 Cal.App.4th 816
    , 821, 826.) “‘A ruling amounts to an abuse
    of discretion when it exceeds the bounds of reason, and the
    burden is on the party complaining to establish that
    discretion was abused.’” (Workman v. Colichman (2019) 
    33 Cal.App.5th 1039
    , 1056.) In the context of severing
    unconscionable provisions from an arbitration agreement,
    “the strong legislative and judicial preference is to sever the
    offending term and enforce the balance of the agreement:
    Although ‘the statute appears to give a trial court some
    discretion as to whether to sever or restrict the
    unconscionable provision or whether to refuse to enforce the
    entire agreement[,] . . . it also appears to contemplate the
    latter course only when an agreement is “permeated” by
    unconscionability.’ [Citation.]” (Roman v. Superior Court
    19
    (2009) 
    172 Cal.App.4th 1462
    , 1477–1478, quoting
    Armendariz, 
    supra,
     
    24 Cal.4th at 122
    .)
    Here, the trial court concluded that, although none of
    the unconscionable provisions on their own “would
    necessitate a conclusion that the agreement is permeat[ed
    by] unconscionability . . . taken together, such a conclusion is
    required.” Based on the finding that severance was not
    possible and unconscionability “permeat[ed]” the Arbitration
    Agreement, the trial court refused to enforce it.
    We find that the trial court’s determination that the
    agreement was permeated by unconscionability, while not
    required, was within its discretion. One factor weighing
    against severance is when “the arbitration agreement
    contains more than one unlawful provision.” (Armendariz,
    
    supra,
     
    24 Cal.4th at 124
    .) As discussed above, three aspects
    of the agreements are unconscionable: the carve-outs
    permitting Cambrian to obtain an injunction from the courts
    on one-sided terms on matters more significant to Cambrian
    while relegating the claims most significant to Alberto to
    arbitration, the illegal prohibition on Alberto discussing her
    wages, and the waiver of PAGA claims. Taken together, the
    trial court could have reasonably concluded that “[s]uch
    multiple defects indicate a systematic effort to impose
    arbitration on an employee not simply as an alternative to
    litigation, but as an inferior forum that works to the
    employer’s advantage.” (Ibid.) Thus, the trial court’s finding
    that unconscionability permeated the arbitration agreement
    as a whole and its refusal to sever the unconscionable
    20
    provisions was a reasonable exercise of its discretion. The
    trial court was not required to sever the offending provisions
    and enforce the remainder of the Arbitration Agreement.
    DISPOSITION
    The trial court’s order denying arbitration is affirmed.
    Respondent is awarded her costs on appeal.
    DAUM, J. *
    We concur:
    COLLINS, J.
    CURREY, Acting P.J.
    *     Judge of the Los Angeles Superior Court, assigned by the
    Chief Justice pursuant to Article VI, section 6, of the California
    Constitution.
    21
    Filed 5/10/23
    CERTIFIED FOR PUBLICATION
    IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
    SECOND APPELLATE DISTRICT
    DIVISION FOUR
    JENNIFER PLAYU ALBERTO,                      B314192
    Plaintiff and Respondent,            (Los Angeles County
    Super. Ct. No. 20STCV41466)
    v.
    ORDER GRANTING
    CAMBRIAN HOMECARE,                              PUBLICATION
    Defendant and Appellant.
    THE COURT:*
    The opinion in the above-entitled matter filed on April 19, 2023, was
    not certified for publication in the Official Reports. Good cause appearing, it
    is ordered that the opinion in the above-entitled matter be published in the
    official reports.
    *CURREY, Acting P.J.           COLLINS, J.              DAUM, J.**
    **Judge of the Los Angeles Superior Court, assigned by the Chief
    Justice pursuant to article VI, section 6 of the California Constitution.